Tax Risks with EIS Investments

EIS investments come with some tax risks. Companies must meet strict conditions to qualify. If these conditions change, investors could lose their EIS tax benefits.
For example, if a company exceeds asset limits, investors might lose 30% of their benefits.
Funds raised must be used for qualifying activities within two years. If not, the company risks disqualification.
Also, investors can’t hold more than 30% of the company. Lastly, investors can’t work for the company unless certain conditions are met.
Apex Accountants helps investors stay on track. We provide
- compliance checks
- assist with HMRC approval, and
- ensure proper documentation to protect your EIS investment